DOJ's DEA awards $295K for Callyo Plus System renewal, a sole-source contract

Contract Overview

Contract Amount: $29,520 ($29.5K)

Contractor: Callyo 2009 Corp

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CALLYO PLUS SYSTEM RENEWAL - FY2026 POP DATES: 10/01/2025 TO 09/30/2026

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75284

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $29,520 to CALLYO 2009 CORP for work described as: CALLYO PLUS SYSTEM RENEWAL - FY2026 POP DATES: 10/01/2025 TO 09/30/2026 Key points: 1. The contract is a sole-source renewal, indicating a lack of competitive bidding for this specific system. 2. The renewal covers a 12-month period, suggesting ongoing operational needs for the Callyo Plus System. 3. The award amount of $295,200 is for a firm-fixed-price contract, providing cost certainty for the government. 4. The system falls under the 'Other Communications Equipment Manufacturing' NAICS code, highlighting its specialized nature. 5. The contract was not competed under the Simplified Acquisition Procedures (SAP), suggesting it may have exceeded those thresholds or was intentionally sole-sourced. 6. The vendor, Callyo 2009 Corp, has a history with this system, implying established functionality and user familiarity.

Value Assessment

Rating: questionable

Benchmarking the value of this specific renewal is challenging without access to prior pricing or market analysis for the Callyo Plus System. As a sole-source award, there's an inherent risk of overpayment compared to a competitively bid scenario. The firm-fixed-price structure, however, limits the government's exposure to cost overruns once the price is set. Further analysis would require understanding the system's criticality and the availability of alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates it was 'NOT COMPETED UNDER SAP,' which could imply it was either too expensive for SAP or intentionally procured without competition. The lack of competition means potential bidders were not given an opportunity to offer their solutions or pricing, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, the government cannot be assured it is receiving the best possible price for this communication equipment renewal.

Public Impact

The Drug Enforcement Administration (DEA) benefits from the continued operation of the Callyo Plus System. This system likely supports critical law enforcement and investigative functions within the DEA. The renewal ensures the continuity of services provided by the Callyo Plus System to DEA personnel. The geographic impact is primarily within the operational areas of the DEA, likely nationwide. Workforce implications include ensuring agents and analysts have the necessary tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the procurement process due to sole-sourcing.
Potential for vendor lock-in if no viable alternatives exist or were explored.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Renewal suggests the system meets the agency's needs and is operational.
Contract awarded to a known entity, potentially reducing transition risks.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector (NAICS 334290) encompasses a range of specialized communication devices. This contract for the Callyo Plus System renewal fits within this sector, likely representing a specific software or hardware solution for communication and data management. Benchmarking comparable spending is difficult without knowing the exact nature of the Callyo Plus System, but spending in this sector can range from niche equipment to broader communication infrastructure solutions.

Small Business Impact

This contract does not appear to have a small business set-aside. Given it was a sole-source award to Callyo 2009 Corp, there is no indication of subcontracting opportunities for small businesses related to this specific procurement. The impact on the small business ecosystem is neutral as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement regulations and the Drug Enforcement Administration's contracting oversight. As a purchase order, it may be subject to less formal oversight than larger, more complex contracts. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Law Enforcement Technology
Communications Equipment
Investigative Software
Federal Procurement Data

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29,520 to CALLYO 2009 CORP. CALLYO PLUS SYSTEM RENEWAL - FY2026 POP DATES: 10/01/2025 TO 09/30/2026

Who is the contractor on this award?

The obligated recipient is CALLYO 2009 CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $29,520.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the specific functionality of the Callyo Plus System and why is it critical for the DEA?

The Callyo Plus System is a suite of tools designed for law enforcement, often including capabilities for call detail record analysis, data management, and secure communication. For the DEA, such a system is likely critical for tracking communications related to investigations, managing intelligence, and supporting field operations. Its specific functionalities would enable agents and analysts to process vast amounts of communication data efficiently, identify patterns, and build cases against criminal organizations. The renewal indicates that these functionalities are considered essential and currently unmet by other available solutions within the agency's operational framework.

What was the pricing history of the Callyo Plus System for the DEA or other agencies?

Information regarding the specific pricing history of the Callyo Plus System for the DEA or other agencies is not publicly available in the provided data. As this is a sole-source renewal, historical pricing data would be crucial for assessing whether the current $295,200 award represents fair and reasonable pricing. Without comparative data from previous years or from similar government procurements of this system or comparable systems, it is difficult to definitively benchmark the value. Agencies typically conduct price analyses, but these are often internal documents not released publicly.

Are there any known alternatives to the Callyo Plus System that the DEA considered or could consider in the future?

The data indicates this contract was awarded on a sole-source basis, suggesting that either no alternatives were identified, or the Callyo Plus System was deemed uniquely capable and essential, making competition impractical or undesirable for this specific renewal. In the future, the DEA might conduct market research to identify potential alternatives, especially if the cost of the Callyo Plus System increases significantly or if new technologies emerge. However, the sole-source nature of this award implies that, for the period covered by this renewal, alternatives were either not viable or not pursued.

What is the track record of Callyo 2009 Corp in providing similar systems to government agencies?

Callyo 2009 Corp is the vendor for the Callyo Plus System, and this award represents a renewal, suggesting a prior relationship and delivery of services. While specific details of their track record are not provided, the fact that the DEA is renewing their contract implies a level of satisfaction with their performance and the system's capabilities. Government contractors are generally assessed on past performance, and a renewal often signifies that the contractor has met or exceeded expectations in previous contract periods. Further due diligence would involve reviewing past performance evaluations if available.

How does this spending compare to other DEA technology procurements or similar law enforcement communication tools?

Comparing this $295,200 award for the Callyo Plus System renewal to other DEA technology procurements or similar law enforcement communication tools is challenging without more context on the system's scope and the nature of other procurements. The amount is relatively modest for a federal agency's technology budget, suggesting it might be for a specific module, a limited user base, or a particular operational need. Larger procurements for enterprise-wide software solutions or hardware infrastructure can run into millions of dollars. This specific award likely represents a targeted investment in a specialized communication capability.

What are the potential risks associated with relying on a sole-source provider for critical communication systems?

Relying on a sole-source provider for critical communication systems carries several risks. Firstly, it eliminates competitive pressure, potentially leading to higher prices and reduced incentives for the vendor to innovate or improve service quality. Secondly, it creates vendor lock-in, making it difficult and costly to switch to alternative solutions in the future, even if better or cheaper options become available. Thirdly, the agency becomes highly dependent on the vendor's financial stability and continued operation; if the vendor faces business challenges, the agency's critical systems could be jeopardized. Finally, sole-sourcing can sometimes indicate a lack of thorough market research or a failure to plan for competitive procurements.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 402 N DIVISION ST, CARSON CITY, NV, 89703

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,520

Exercised Options: $29,520

Current Obligation: $29,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline